STOCKWATCH: ArcelorMittal SA shares plunge more than 17% as CFO resigns
ArcelorMittal SA’s shares plunged more than 17% to new lows on Tuesday, after the struggling steel producer announced that Dean Subramanian had resigned as its chief financial officer after nearly three years on the job. Several executives have left the company in quick succession in recent months, raising questions about the stability of SA’s biggest steel producer, which has racked up losses over the past few years. Hendrik "Kobus" Verster assumed the role of CEO in February, replacing Wim de Klerk, who retired. De Klerk only served as CEO for a little more than a year‚ taking over from Paul O’Flaherty, who held the top job for just 18 months. ArcelorMittal has been battling low steel demand and rising input costs, compounded by cheap steel imports. The company said the search was on to replace Subramanian, who will leave by the end of July. The share price was down 17.5% to R2.31 in late trade, giving the company a market valuation of 2.6bn.
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